Is anyone else troubled by the fact that government sponsored agencies will fund mortgages on $1 million homes? See this article, which says that Fannie Mae and Freddie Mac will be allowed to increase their lending limits to fund $1 million homes.
This is another boondoggle for the real estate industry. Making $1 million mortgages easier to get helps the builders and brokers who build and sell $1 million homes. I would have expected this from a Trump administration, not a Biden administration.
When these mortgages default in the next recession, the government will be bailing them out. We should be providing mortgage assistance to the folks who need that assistance, not those buying $1 million homes.
Perhaps I don’t understand the policy reasons behind this. Why stop at $1 million homes rather than $10 million or more?